Thursday, October 7, 2010

Outside Reversal Day For Gold & Silver

Silver and the SLV put in an outside reversal day, which at the very least should lead to 2 to 4 weeks of weakness. We will be looking for an impulse wave down to confirm that wave C down in silver is underway to below $8.00. A 3 wave pullback to the 50dema would be very bullish and offer an opportunity to get long for a runup to $30.00. It could really go either way at this point, but traders may want to take profits and wait for a new trade to develop.

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